A thought process or method used to generate creative ideas by exploring many possible solutions.

An approach to analysis that zeros in on how the different parts of a system interrelate and how systems work within the context of other larger systems.

something that is believed to be true or probably true but that is not known to be true

is a proposed explanation for a phenomenon

Is a method used to found a new company or introduce a new product on behalf of an existing company.

ENTREPRENEURS ARE EVERYWHERE

You have to work in a garage to be in a startup

ENTREPRENEURSHIP IS MANAGEMENT

A startup is an institution, not just a product, so it requires management, a new kind of management specifically geared to its context.

VALIDATED LEARNING

Startups exist not to make stuff, make money, or serve customers. They exist to learn how to build a sustainable business. This learning can be validated scientifically, by running experiments that allow us to test each element of our vision.

INNOVATION ACCOUNTING

To improve entrepreneurial outcomes, and to hold entrepreneurs accountable, we need to focus on the boring stuff: how to measure progress, how to setup milestones, how to prioritize work. This requires a new kind of accounting, specific to startups.

BUILD-MEASURE-LEARN

The fundamental activity of a startup is to turn ideas into products, measure how customers respond, and then learn whether to pivot or persevere. All successful startup processes should be geared to accelerate that feedback loop.

Tests whether a product or service really delivers value to customers once they are using it.

tests how new customers will discover a product or service.

a simple statement that summarizes why a customer would choose your product or service.

Is the process by which you divide your customers up based on common characteristics – such as demographics or behaviors, so you can market to those customers more effectively.

Is a strategic management template used for developing new business models and documenting existing ones.

Some Value Propositions satisfy an entirely new set of needs that customers previously didn’t perceive because there was no similar offering.

Improving product or service performance has traditionally been a common way to create value.

Tailoring products and services to the specific needs of individual customers or Customer Segments creates value.

Value can be created simply by helping a customer get certain jobs done.

is an important but difficult element to measure. A product may stand out because of superior design.

Customers may find value in the simple act of using and displaying a specific brand.

offering similar value at a lower price is a common way to satisfy the needs of pricesensitive Customer Segments.

Helping customers reduce costs is an important way to create value.

Customers value reducing the risks they incur when purchasing products or services.

Making products and services available to customers who previously lacked access to them is another way to create value.

Making things more convenient or easier to use can create substantial value.

This means there is no real relationship between the company and the customer.

maybe even deep relationship is established between the company and the customer.

This relationship is based on human interaction.

In this type of relationship, a company maintains no direct relationship with customers.

This type of relationship mixes a more sophisticated form of customer self-service with automated processes.

Increasingly, companies are utilizing user communities to become more involved with customers/prospects and to facilitate connections between community members.

More companies are going beyond the traditional customer-vendor relationship to cocreate value with customers.

Indicate how easy or how difficult it is for a customer to switch to a different alternative.

These activities relate to designing, manufacturing, and delivering a product in substantial quantities and/or of superior quality.

Key Activities of this type relate to coming up with new solutions to individual customer problems.

Business models designed with a platform as a Key Resource are dominated by platform or network related Key Activities.

This category includes physical assets such as manufacturing facilities, buildings, vehicles, machines, systems, point-of-sales systems, and distribution networks. Retailers like Wal-Mart and Amazon.com rely heavily on physical resources, which are often capital-intensive.

Every enterprise requires human resources, but people are particularly prominent in certain business models. For example, human resources are crucial in knowledgeintensive and creative industries.

Some business models call for financial resources and/or financial guarantees, such as cash, lines of credit, or a stock option pool for hiring key employees.

___ resources such as brands, proprietary knowledge, patents and copyrights, partnerships, and customer databases are increasingly important components of a strong business model.

The most basic form of partnership or buyer-supplier relationship is designed to optimize the allocation of resources and activities.

Partnerships can help reduce risk in a competitive environment characterized by uncertainty.

Few companies own all the resources or perform all the activities described by their business models. Rather, they extend their own capabilities by relying on other firms to furnish particular resources or perform certain activities.

The most widely understood Revenue Stream derives from selling ownership rights to a physical product.

This Revenue Stream is generated by the use of a particular service.

This Revenue Stream is generated by selling continuous access to a service.

This Revenue Stream is created by temporarily granting someone the exclusive right to use a particular asset for a fixed period in return for a fee.

This Revenue Stream is generated by giving customers permission to use protected intellectual property in exchange for licensing fees.

This Revenue Stream derives from intermediation services performed on behalf of two or more parties.

This Revenue Stream results from fees for advertising a particular product, service, or brand.

___ business models focus on minimizing costs wherever possible.

Some companies are less concerned with the cost implications of a particular business model design, and instead focus on value creation.

Cost advantages that a business enjoys as its output expands.

Cost advantages that a business enjoys due to a larger scope of operations.

Costs that remain the same despite the volume of goods or services produced.

Costs that vary proportionally with the volume of goods or services produced.